Mortgage Advice

Treetops_4

Having got into minor financial stresses, we have decided to down size our home.

In order to buy the house we want, we need a mortgage of £143500. The bank will lend us £167000. The rate is currently 4.89% on the end of a fixed product due to end in December 07.

Do we just take the mortgage we need or take the extra and bank it in somthing like ICICI so we have some cash behind us.

We may move again in the future and would be likely to need money to renovate a potential property should this effect our decision?

We are both self-employed and have raised the mortgage on actual earnings figures.

We have no other debts as these will be cleared by the house move, but no other current savings either. We should be able to start saving once we have moved.

Also, we have an early redemption penalty charge on our mortgage. The product is portable but as we are downsizing to avoid getting into real difficulties some of the penalty is being charged. Is this fair?

_Andy_

Treetops wrote: »

Also, we have an early redemption penalty charge on our mortgage. The product is portable but as we are downsizing to avoid getting into real difficulties some of the penalty is being charged. Is this fair?

Yes, why wouldn't it be?

Treetops_4

Because we are taking action to avoid financial difficulties and they have changed their lending criteria and will not re-lend the same amount as the original mortgage.